S T A T E O F N E W Y O R K
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3961
2011-2012 Regular Sessions
I N A S S E M B L Y
January 31, 2011
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Introduced by M. of A. MAGNARELLI, HOOPER, ENGLEBRIGHT, SCHROEDER,
V. LOPEZ, GUNTHER -- Multi-Sponsored by -- M. of A. BOYLAND, COLTON,
COOK, CUSICK, DESTITO, GALEF, MAYERSOHN, J. MILLER, MILLMAN, PHEFFER,
REILLY, TITONE, WEISENBERG, WRIGHT -- read once and referred to the
Committee on Insurance
AN ACT to amend the insurance law, in relation to collision or compre-
hensive coverage on motor vehicles
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 2610 of the insurance law is amended by adding a
new subsection (c) to read as follows:
(C)(1) NO INSURER IN PROCESSING ANY SUCH CLAIM, SHALL LIMIT THE
PAYMENT OF SUCH CLAIM FOR DAMAGE TO A MOTOR VEHICLE REPAIR BASED ON
PRICING CAPS FOR LABOR, PARTS, PAINT OR REPAIR MATERIALS. ALL ELEMENTS
OF SUCH A CLAIM FOR DAMAGES SHALL BE NEGOTIATED WITH THE INSURED, OR HIS
OR HER DESIGNATED REPRESENTATIVE, BY A DULY LICENSED APPRAISER.
(2) IF A RECOMMENDATION OR SUGGESTION OF AN AUTOMOTIVE REPAIR FACILITY
IS MADE BY THE INSURER, AND ACCEPTED BY THE CLAIMANT, THE INSURER SHALL
CAUSE THE DAMAGED VEHICLE TO BE RESTORED TO ITS CONDITION IMMEDIATELY
PRIOR TO THE LOSS AT NO ADDITIONAL COST TO THE CLAIMANT OTHER THAN
DEDUCTIONS STATED IN THE POLICY. SHOULD THE INSURER FAIL TO RESTORE THE
VEHICLE TO ITS CONDITION IMMEDIATELY PRIOR TO THE LOSS, THE INSURER
SHALL AT NO ADDITIONAL EXPENSE TO THE CLAIMANT CAUSE THE VEHICLE TO BE
RESTORED TO ITS CONDITION IMMEDIATELY PRIOR TO THE LOSS AT A SHOP OF THE
CLAIMANT'S CHOICE. THE INSURER SHALL MAINTAIN IN ITS FILE, A STATEMENT,
SIGNED BY THE CLAIMANT, PLAINLY PRINTED IN NO LESS THAN 10 POINT TYPE:
"PURSUANT TO SECTION 2610 OF THE INSURANCE LAW, AN INSURANCE COMPANY MAY
NOT LIMIT PAYMENT BASED ON PRICING CAPS FOR LABOR, PARTS, PAINT OR
REPAIR MATERIALS. AN INSURER CANNOT REQUIRE THAT REPAIRS BE MADE TO A
MOTOR VEHICLE IN A PARTICULAR PLACE OR REPAIR SHOP. YOU HAVE THE RIGHT
TO HAVE YOUR VEHICLE REPAIRED IN THE SHOP OF YOUR CHOICE".
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03159-01-1
A. 3961 2
S 2. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a law and shall apply to all
policies and contracts issued, renewed, modified, altered or amended on
or after such effective date; provided, however, that effective imme-
diately, the addition, amendment and/or repeal of any rule or regulation
necessary for the implementation of this act on its effective date are
authorized and directed to be made and completed on or before such
effective date.